495 WEST

495 NORTH

495 NORTHEAST

495 SOUTH

128 SOUTH

128 NORTHWEST

128 NORTH

FRAMINGHAM/NATICK

INNERSUBURBS

128 WEST

SOUTH INDUSTRIAL M

ARKETQ3

2016

ASKING RENT

LEASING ACTIVITY

12-MONTH ABSORPTION

SUBLEASE VACANCY

DIRECT VACANCY

STATISTICS OVER THE LAST 12 MONTHS

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q3

303 Congress Street | Boston, MA 02210 | 617.457.3400

www.NAIHunneman.com

Q3 2016

Class A&B Rents

Submarket Trends

$0

$2

$4

$6

$8

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Route 128 South Route 495 South

‐ Wth 2.6 million square feet of industrial space absorbed over the last five quarters, vacancies now sit 250 basis points below year‐ago levels in the South markets.

‐ Martignetti Liquors took occupancy of its newly‐built regional head quarters in Taunton.

‐ Serta Mattress is relocating to Connecticut, leaving 150,000 square feet available at 61 Leona Drive, Middleboro.

‐ Central Pet & Garden closed its 350,000‐square‐foot distribution center, Clark Cutler McDermott vacated 59,970 square feet in Franklin and Astrodyne closed 29,000 SF in Mansfield.

‐ Throughout the metro, breweries continue to drive demand for industrial space. Trillium Brewing recently subleased 36,400 square feet at 50 Hudson Road in Canton.

ArrowsDirect Vacancy Sublease Vacancy 12-month Absorption Leasing ActivityAsking RentDown Down Up Up Up

Seaport Total Inventory Under Construction Direct Vacant Sublease VacantRoute 128 Sout 35,933,206 0 2,751,820 0Route 495 Sout 29,823,031 649,700 2,921,359 0Total 65,756,237 649,700 5,673,179 0

Notable TransactionsTenant Address City SizeHome Depot* 625 University AvenueNorwood 218,259 Moderna Therp 100 Upland Drive Norwood 193,000 Amazon.com 12 Industrial Drive Milford 162,499 TricorBraun* 71 Hampden Road Mansfield 86,264 Symmons Indus275 Bodwell Street Avon 50,000 *Renewal

Featured Deal

Vacancy and Net Absorption

NAI Hunneman assisted Hackman Capital and Calare Properties in a renewal with Home Depot. The big-box retailer executed a long-term lease renewal of its 218,259 square feet at 625 University Avenue in Norwood.

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

-200,000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2014 Q4 2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1 2016 Q2 2016 Q3

Net Absorption Vacancy

VACANCY AND NET ABSORPTIONCLASS A & B RENTS

TENANT ADDRESS CITY SIZE

Home Depot* 625 University Avenue Norwood 218,259

Moderna Therapeutics 100 Upland Drive Norwood 193,000

Amazon.com 12 Industrial Drive Milford 162,499

TricorBraun* 71 Hampden Road Mansfield 86,264

Symmons Industries 275 Bodwell Street Avon 50,000

*Renewal

NOTABLE TRANSACTIONS

TOTAL INVENTORY

(SF)

UNDER CONSTRUCTION

(SF)

DIRECT VACANT

(SF)

SUBLEASE VACANT

(SF)

TOTAL VACANCY

RATE

Q3 NET

ABSORPTION (SF)

YTD NET

ABSORPTION (SF)

ASKING RENT ($/SF)

Route 128 South 35,933,206 0 2,751,820 0 7.7% 113,235 1,378,121 $7.05

Route 495 South 29,823,031 649,700 2,921,359 0 9.8% 371,285 57,904 $5.68

TOTAL 65,756,237 649,700 5,673,179 0 8.6% 484,520 1,436,025 $6.34

FEATURED DEAL

218,259 SF625 UNIVERSITY AVENUE, NORWOOD

NAI Hunneman assisted Hackman Capital and Calare Properties in a renewal with Home Depot. The big-box retailer executed a long-term lease renewal of its 218,259 square feet at 625 University Avenue in Norwood. Home Depot joins PODS and ASD Lighting, who signed significant deals at the building earlier this year.

STATISTICS

SUBMARKET TRENDS

• Wth 2.6 million square feet of industrial space

absorbed over the last five quarters, vacancies now sit

250 basis points below year-ago levels.

• Martignetti Liquors took occupancy of its newly-built

regional head quarters in Taunton.

• Serta Mattress is relocating to Connecticut, leaving

150,000 square feet available at 61 Leona Drive,

Middleborough.

• Central Pet & Garden closed its 350,000-square-foot

distribution center, Clark Cutler McDermott vacated

59,970 square feet in Franklin and Astrodyne closed

29,000 SF in Mansfield.

• Throughout the metro, breweries continue to drive

demand for industrial space. Trillium Brewing subleased

36,400 square feet at 50 Hudson Road in Canton.

SOUTH INDUSTRIAL MARKET